Karnataka Budget: Kumaraswamy Waives Off Farm Loans, Raises Petrol Prices

| July 5 , 2018 , 13:14 IST

Karnataka CM HD Kumaraswamy on Thursday presented the first budget of the newly formed Congress- JD(S) coalition government. He announced a farm loan waiver for all defaulting loans up to December 31st, 2017.

Kumaraswamy also announced the opening of 247 new Indira Canteens in the state and district headquarters. The cost would amount to Rs. 211 crores. 

Karnataka Chief Minister said, “I have decided to waive all defaulted crop loans of farmers up to 31 Dec 2017 in the first stage. Farmers who repaid the loan within time,as an encouragement to the non-defaulting farmers, I have decided to credit the repaid loan amount or Rs 25000 whichever is less.”

Kumaraswamy raising the prices of petrol and diesel said, “I propose to increase the rate of tax on petrol from the present 30% to 32% and diesel from 19% to 21%, so petrol price will be increased by Rs.1.14/ltr and diesel by Rs 1.12/ltr.

He added that Rs 3 crore share capital will be provided to private companies which come forward to open 3-star hotels having 500 room facilities. 30% capital will be provided on term sheet basis to the organisations if they come forward to construct service apartments.

Kumaraswamy announced Kayaka scheme, under which loans up to Rs 5 lakh will be given at 0% interest, and loans from Rs 5 to 10 lakh will be given at 4% interest. The scheme is an attempt to enhance skills and entrepreneurship quality.

Karnataka government also allotted a fund of Rs 50 crore for the rejuvenation of Bellandur lake in Bengaluru and also proposed biometric attendance system in all government schools. The government also announced six elevated corridors in Bengaluru and Rs 4,957 crore earmarked for the water supply and sewage disposal.

To modernize the agricultural sector the government allocated a fund of Rs. 150 crore to adopt Israel model of irrigation. It also announced a Rs. 190 crore protection to the coconut growers who went unproductive in 2017 droughts.